Small Business Owners Lending Money to Employees – Good Business Sense?

There’s no firm statistics on how many small-business owners lend money to staff. But those who frequently engage in the practice say it makes good business sense. One reason, they say, is that it can help prevent a slowdown in productivity because workers who are stressed out about money may have difficulty focusing on their jobs. Another rationale for helping employees overcome financial hardships is that it can boost loyalty, morale and unity within a work force.

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